Monday, 9 September 2019

Managing money can be intimidating, especially when you're first getting started. And many people make mistakes with their money along the way. 

But financial missteps can be costly and some can even have long-term consequences.

So, before you start making important financial decisions, it makes sense to familiarize yourself with the fundamentals of banking and money management. For example, how a checking account works, why you should save money, what overdraft protection is and how to handle a credit card.

With that in mind, we've gathered some essential financial and banking information for you in one convenient place. It's designed to help you understand the basics of money management as you start financial life, whether you're in charge of your checking account while in college or you've just landed your first job.

Understanding the different kinds of bank accounts

Banking is fairly simple once you familiarize yourself with the types of accounts, how they work, and what benefits they offer.

Here's an overview of the different types of bank accounts and some tips for figuring out which one is right for you. You can also read up on how to choose the right checking account for your needs and how to find the right savings account.

Why you may need overdraft protection

Let's face it: when you're young and starting out, you probably don't have a big balance in your checking account. But you do have many opportunities to spend money, and you might not be too diligent about checking your balance on a regular basis. That's where overdraft protection comes in.

Overdraft protection is designed to protect you when you overdraw your checking account — or spend more money than you have. This is very important because overdrawing your checking account can cause you to lose money. Learn more about overdraft protection now.

Why you should save money

Can you really start saving money when you're young? You can, and you should. In fact, figuring out how to save money is probably the most important financial lesson you can learn.

Here's some information about why you need a savings account and also some tips to help you start building a savings safety net.

Why budgeting is so important

It's almost impossible to overstate the importance of having a budget. Even when you don't have much money, you still need to know how much you spend, what you spend it on and how you can save.

And while having a budget might sound like a complicated and boring undertaking, it really is easier than you think. Learn how — and why — you should start working on a budget now.

Understanding how credit cards work

Credit cards are incredibly handy and convenient. They can also help you track your expenses and manage your budget. But to really reap all the benefits credit cards offer, you need to understand how they work and how to handle them properly.

Before you open your first credit card account, take some time to learn how credit cards work and also how to make the most of the many benefits they offer.

Special money tips for college students

Even if you're not footing the bill for your tuition, going off to college still requires you to start managing your own money. Establishing good money habits early on can help you for many years to come. At the same time, poor money management habits can affect you after college as well.

To help you get off on the right foot, take a moment now to read about the six financial rules every college freshman should know. You can also learn more about how to be smart with money while in college with these 15 tips.

Everyday ways to save money

Managing money goes way beyond bank accounts. You handle money every single day, whether it's buying lunch or paying your rent. And if you learn how to save money every day, you'll have more money in your accounts, be able to build your savings and start working toward your long-term financial goals.

The content provided is for informational purposes only. Neither BBVA USA, nor any of its affiliates, is providing legal, tax, or investment advice. You should consult your legal, tax, or financial advisor about your personal situation. Opinions expressed are those of the author(s) and do not necessarily represent the opinions of BBVA USA or any of its affiliates.

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